# China's AI Move with Kimi K3 Hits US Chip Makers Moonshot AI's Kimi K3 model caused a drop in US tech company stocks. - **Source:** [INCRYPTED](https://brifing.si/source/7cd4625d-3f08-4cc1-983d-4c7d991839ba) - **Published:** 2026-07-19 - **Topic:** [Business](https://brifing.si/c/business) - **Original article:** - **On Brifing:** https://brifing.si/s/612cad08-73f6-4475-82db-5f26ba54f4f5 ## Impact of Kimi K3 Chinese company Moonshot AI's Kimi K3 AI model caused a drop in the stocks of US chip manufacturers. The model shook the market by offering a low-cost, high-performance alternative. ## Market Reaction Stocks of companies like Nvidia and Micron Technology fell following the release of Kimi K3. The semiconductor index also lost about 10% on a weekly basis. ## Technological Superiority Kimi K3 was introduced as the world's largest open AI model with 2.8 trillion parameters. However, it ranks third when compared to models like Claude Fable 5 and GPT-5.6. ## China's Strategy Chinese companies are challenging US technological dominance by developing low-cost and efficient AI models. This situation is also linked to US restrictions on chip exports. ## Future Scenarios Analysts recall a similar situation in 2025 with the DeepSeek model. However, they note that the market recovered with investments from US companies. ## The Future of Competition The release of Kimi K3 intensifies competition in the AI field. China's rapid development in this area threatens US leadership and could shift global balances. ## Sources covering this story - https://incrypted.com/kytajskaja-model-kimi-k3-ot-moonshot-ai-obvalyla-aktsyy-amerykanskyh-proyzvodytelej-chypov-wsj/ — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._